the point of the thermostat ALWAYS!!!!!! points away from the engine!!!!(spring inside the engine)...I've had three people that bought trucks off me blow mint (non-smoking!) engines from thinking they should change the thermostat themselves...on the heater question...there is a bypass/blockoff valve on the driverside of the heater box..the heater tube goes into it and there is a small jumper hose to the heater core..check it..it might be stuck or clogged..my 26 had that problem when i got it...(now it's leaking alittle!..different problem!)..take a quick look..it's worth a shot